And to go into bat for the other team, id recommend the Nikon D60. Sits right in your budget and you get allot of camera for your dollar.
I have a soft spot for Nikon and always will but from a non bias point of view, Canon are a slightly better camera for the professional but only when you start spending upwards of 4 to 5k on one. So until your'e making money from your pic's id say it wouldn't be worth comparing the two.... Head to a camera shop and have a hands on. Don't take too much advice from the Muppet behind the counter, he will just try and sell what ever he makes more on... You will know what sits well with you as both brands follow pretty much the same controls, functions and formats right through their range so if you use a camera at the shop you can control easy then there is a good chance it will be just as easy to use as an older one you can afford that you buy online.
Personally, i'd be jumping all over this if I were you!
Nikon D60 DSLR kit $500 of extras 18-55, 70-300mm batteries bags filters 5yrWTY | eBay
